30-31

You get a letter from the city attorney that states that in 2021 your city will have to pay a $6 million judgment. The event occurred in 2018 The parties agreed to settlement in 2020 It will be paid in 2021 Which is the year that it will be reflected in the government-wide statements? For this assume that until the settlement agreement, there was no reasonably estimated projection. a. 2018 b. 2020 c. 2017 d. 2021 e. 2019 If a bond is issued by a governmental unit and there is a discount on this issue, what happens to the discount? (multiple answers possible) a. goes into the brokers pocket b. increases the cost of the capital project c. goes to debt service fund to increase future interest costs d. the project will have to be scaled down e. other resources will have to be found to make up the shortage